Group 9 Business Research Methodology Barriers to employing digital technologies for a circular economy: A multi-level perspective Presented by Arvind MS22A009 | Arun MS22A010 | Bhoomi MS22A017 | Shravani MS22A020 | Jeyagouri MS22A037 | Radhika MS22A062 | Rajat MS22A064 | Sakthi MS22A072 | Shalini MS22A077 Table of Contents I Abstract II Gaps in Research III Methodology IV Research Results V Implications & Suggestions VI Limitations / areas of improvements I Abstract Definition Industry 4.0 Vs DT - Resource optimization Barriers to adopt to digital technologies How is it different from previous literature? Less attention to Multi-level nature Lacking systematic understanding of the phenomenon Significance of this literature Systemic literature + case studies of nine firms Framework to cover 45 barriers under 8 dimensions (each unique to multi-level nature) 3 I Abstract The 45 barriers to adopt DT with Circular Economy (multi-level) 1. Knowledge management (five barriers), 2. Financial (three barriers), 3. Process management & Governance (eight barriers), 4. Technological (ten barriers), 5. Product & Material (three barriers), 6. Reverse logistic infrastructure (four barriers), 7. Social behaviour (seven barriers), and 8. Policy & Regulatory (five barriers). Government policies to focus sustainable initiatives, mitigating barriers We focus the theoretical and empirical understanding of DT barriers towards circular economy 4 II Gaps in Research Observe Search Map Synthesize Consult Prioritize Enroll II Gaps in Research Authors Lobo et al. (2021) Conclusions/Summary Defines Smart circular economy as “an industrial system that uses Digital Technologies (DTs) to provide intelligent functions for implementing value-added circular strategies” Kristoffersen et al. (2020) Identifies it is unlikely to transition to a circular economy without the adoption of DT Oliveira-Dias et al. (2022) Identifies it is unlikely to transition to a circular economy without the adoption of Supply chain agility Stucki et al. (2023) Identifies some companies face significant barriers to adopt DTs in their business which might affect Circular economy Transition and most happens in earlier stages Zhang et al. (2019) Presented twelve critical barriers to smart waste management implementation II Gaps in Research Authors Ingemarsdotter et al. (2021) Kumar et al. (2021) Liu et al. (2021) Cezarino et al. (2019); Lobo et al. (2021) Trevisan et al. (2021) Conclusions/Summary Identifies 19 challenges in maintenance field Addresses seventeen barriers to using big data analytics (BDA) for sustainable manufacturing operations Discussed econouncmic, institutional, social, and technological challenges in smart water management Literature review presenting Critical gaps Citied as study engaged only in theory II Gaps in Research Authors Conclusions/Summary Ingemarsdotter et al. (2020) Exclusively looked the challenged from one company Mahdi et al., 2022; Yousefi et al. (2021) Research stream has focused on developing more eco-friendly technologies Cui et al. (2021); Okorie and Russell (2022) Abdul-Hamid et al. (2020) Chiappetta Jabbour et al. (2020) This research has focused on barriers related to a specific technology This research has focused on barriers related to a Industrial Sector This research has focused on barriers related to business Model II Gaps in Research Authors Conclusions/Summary Ghisellini et al. (2016) Studied the implementation of CE In Micro-level Industry Antikainen and Valkokari, 2016; Ghisellini et al. (2016) Studied the implementation of CE In Meso-level Industry Kirchherr et al. (2017). Dąbrowska et al. (2022) Studied the implementation of CE In Macro-level Industry Khatami et al. (2023) Dąbrowska et al. (2022) Emphasised that DTs can support the CE at the national level This research generally focuses on the micro level associated with a single company II Gaps in Research Authors Conclusions/Summary Hunter and Brewer (2015) A multimethod approach was adopted that combined a systematic literature review (SLR) and multiple case studies of nine Brazilian circular startups. Hahn (2019) Cezarino et al. (2019) He et al. (2022) Startup companies represent a suitable setting for the research because they are on the front line of data analytics services and digital platform models The paper advances the SCE field in emerging countries Emerging economies generally improve environmental aspects slowly compared to countries already at the forefront of technological development. II Gaps in Research - Areas Covered What Circular economy is? Adoption of Digital Technology in the Circular Economy. Barriers to the Adoption of Technology on a specific level. Economic, institutional, social, and technological challenges. Implementation of Circular Economy in Different Scales of industry. How the Multilevel approach should be adopted. II Gaps in Research - Gaps Understanding the phenomenon. Multi-level nature of barriers to a smart circular economy. III Methodology 9 Systematic Literature Review Multiple Case Study Data Collection Goal: To Identify barriers not revealed in the literature Databases - Scopus, Web of Science Semi-structured interview Criteria for choosing Firm should be considered a startup Startup should be considered circular Exclusion Criteria: Startup should employ emerging DTs in its business Disregard papers before 2012 model Only papers published in Startup should be a rich data source on the English were taken phenomenon studied. Only papers addressing 9 brazilian circular startups were investigated barriers were selected Semi structured interviews (30m to 1h15m) CTOs contacted through linkedIn Anonymity maintained 9 Data Analysis Interview transcripts & articles from SLR are considered for inductive content analysis (MAXQDA) and open coding The results from case study and SLR were compared on an iterative basis to process. understand the differences between OPEN CODING PROCESS analysis led to forming 8 aggregate It consists of 2 analysis cycles: First cycle: The idea is synthesized into a paragraph or a sentence using descriptive open coding theory and application. The result of dimensions. During the understanding analysis, the authors origin tried and consequences of barriers at different levels of CE and DT applications which allowed them to deeply understand the Second Cycle: phenomena under study. The codes generated are clubbed into dimensions representing the patterns that emerged in the first cycle. 9 Data Analysis 9 III Methodology Method Location Survey City, Country Collected Sample Duration 300 completed survey 2021 January -December Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. 9 III Results & discussions 3.1 Knowledge management barriers What is stakeholder perception & understanding of technical & environmental knowledge? Lack of knowledge about sustainability & tech application within organisations Managers are unaware of the opportunities or methods of implementation Lack of knowledge of good environment practices The organisation lacks knowledge resources about CE principles Lack of skilled labour Skilled workforce combined IT & Circular Economy is low Lack of environmental awareness and education Stakeholders do not have awareness of the circular economy Lack of perception of environmental and economic gains Stakeholders do not know the benefits of using Digital Technologies Companies have traditional cost mindsets which turns them away from using new tech III Results & discussions 3.1 Knowledge management barriers Scope of the barrier: micro, meso, macro Lack of knowledge affects actors and stakeholders all across the value chain from producers to consumers The business ecosystem requires more knowledge about technologies and circular economy, governance, good practices III Results & discussions 3.2 Financial barriers What hinders advancement & development of technology solutions? Lack of financial resources Self financing is difficult which restricts investments in new business Credit availability could be low High implementation and running costs Cost of investment turns companies away based on their budgets or industry Low demand affects margins because consumers down the line cannot visualise the benefits of sustainability Lack of investment in digitization for sustainability Spending on CE is seen as an unnecessary expense Scope of the barrier: micro, meso Small players & producers, cooperatives are averse or unable to bear the monetary cost Larger companies and industries need to participate more and mobilize funds to encourage investment III Results & discussions 3.3 Process management and governance barriers What hinders advancement & development of technology solutions? Lack of leadership & management support Support and financial resources are unlikely to be given without top management approval Difficulties in process adaption Process redesign towards sustainable circular economy becomes challenging Lack of a responsible sector within the cilent Stakeholders are unable to influence technology adoption along the value chain Lack of innovation capacity Hard to find successful business models, achievable goals, and leaders with a culture of innovation Lack of confidence in investment and risk aversion Caused by insufficient workforce, unclear economic benefits, expenses, complexity of SCE III Results & discussions 3.3 Process management and governance barriers What hinders advancement & development of technology solutions? Lack of integration of company areas low communication & alignment within Lack of cooperation and coordination between business partner company itself Distrust, poor coordination, lack of integration Hinders innovation and redesign affects collaboration in the SCE ecosystem Lack of long-term planning Short term gains in profit often trump long term goals in an organisation III Results & discussions 3.3 Process management and governance barriers Scope of the barrier: micro, meso Provide employees with an environment that gives them creative freedom Increase collaboration with third parties Align with stakeholders III Results & discussions 3.4 Technological barriers What hinders advancement & development of technology solutions? Lack of infrastructure for GDPL application Small & medium-sized companies struggle Difficulties in data collection and storage There are various difficulties like low-quality data, incompatible format, difference in data collection Difficulties in data analysis and model building to follow general data protection laws This barrier suggests that models and wanting high technological infrastructure anazlyzes tend to fail to provide support for Difficulty in supporting & maintaining systems Updates & changes can prevent mobile decision-making Technological failures and limitations devices/application from normal working as Feasibility is an important criteria which can Technology is improving constantly be limitied by availability of technology on the market and the frequency of failures III Results & discussions 3.4 Technological barriers What hinders advancement & development of technology solutions? Lack of interoperability and integration Due to lack of standards & protocols, Lack of standards and protocols Product development, data sharing are not based on standards and protocols resulting in poor SCE Lack of models and tools integrating data from different partners is Managers need sufficient models to know challenging more about human computer interaction to Data Security and Privacy issues Companies are prone to theft & loss of data due to cyber-attacks & blackmailers measure circularity maturity Lack of adequate IT infrastructure Introduction of new DT needs update of existing hardware and software implying additional cost & generate resistance among work force III Results & discussions 3.4 Technological barriers Scope of the barriers: micro, meso Models, tools & standards should be established internally, cross-industrially & globally with regulations Adequate infrastructure is needed for all levels It reduces technological connectivity failures that can hamper communication between companies & devices III Results & discussions 3.5 Product & Material barriers What hinders advancement & development of technology solutions? Difficulties in technology and product development Circular & digital strategies require Low quality of material collected Materials that are dirty, wet & mixed with non-recyclable materials can't be tracked using invoices ending up in landfills Scope of the barrier: micro developing & adapting the necessary Material collection & recycling systems should products & technologies adopt different logic to stimulate waste Low added value of certain materials Unbalanced product collection hampers smart RL solutions Collectors collect materials with higher added value over low valuable materials collection in order to achieve economic viability Actors in the ecosystem & society should align for increasing the selecting collection in order to improve the quality & homogeneity of collected material III Results & discussions 3.6 Reverse Logistics Infrastructure barriers What hinders advancement & development of technology solutions? Lack of infrastructure for waste pickers’ cooperatives Informality of waste pickers’ cooperatives The lack of standard operating procedure Cooperatives do not have the necessary among waste pickers can lead to additional physical infrastructure to sort complex constraint in use of DT for waste tracking materials & to provide quality data & other support Low logistics infrastructure Places with low logistics infrastructure can't be implemented with digital solutions as operating efficiency is reduced in such places Low investment in selective collection Lack of selective collection initiatives diminishes the quality of material collected III Results & discussions 3.6 Reverse Logistics Infrastructure barriers Scope of the barriers: meso, macro The insights suggest about the emerging countries not just Brazil Ecosystem surrounding the company needs to guarantee circularity by investing at macrolevel Informal workers should be regularized and imparted knowledge to continue data analysis III Results & discussions 3.7 Social barriers What are social barriers that hinder the adoption of digital transformation ? Data-sharing concerns Entrepreneurs & consumers are concerned about sharing sensitive business data Structural unemployment Disruptive changes caused by digitalization Human behaviours lack of care for public property transparency in waste management Consumer behaviour Lack of confidence in the quality of sustainable products Understanding of technological benefits Resistance to change Strongly supported by both empirical & theoretical data 11 III Results & discussions 3.7 Social barriers Scope of the barriers: micro, meso, macro Data security concerns Lack of care for public property Waste management on macro-sociocultural level Reducing structural unemployment Trust building among employees At Meso-level, Consumers and business partners need to see the long-term benefits to accept the changes At Macro-level, Culture of an SCE should be propagated, reducing regional differences in accepting DT 11 III Results & discussions 3.8 Policy and regulatory barriers What are the barriers in the policy and regulatory dimension? Lack of government incentives Excessive bureaucracy and taxation High cost of importing material and technology Low government inspection and control Low environmental targets Scope: macro Government should take a more assertive role in encouraging an SCE Despite Brazil's advanced legislation, the lack of practical control has resulted in inadequate and irregular operations, causing unfair competition between actors operating regularly at the meso-level and an increase in greenwashing practices at the micro-level Low national environmental targets at the macro-level also imply slower progress in terms of digitalization IV Implications and Suggestions Theoretical implications: 1. Prior studies recognize knowledge management barriers but only focus on micro-level barriers, focusing on what individuals and firms know about SCE, ignoring that these barriers also entail meso and macro aspects. Knowledge has to be widely disseminated and not just remain within organizational boundaries. 2. Financial barriers have an interdependence nature in SCE transitions. Full potential of DTs might not be unleashed due to a lack of certain firms’ capacity (e.g., waste pickers’ cooperatives) to afford these technologies. Financial limitations permeate the different actors involved in the transition. 3. Process management and governance barriers involve a key feature: the alignment between different actors. 12 IV Implications and Suggestions Theoretical implications: 4. The findings of the study explain that technological barriers related to data management require the involvement of multiple actors for dealing with standards to collect, integrate, and share data at the microlevel (e.g., appropriate data format), at the meso-level (e.g., aligning standards at ecosystem) and at the macro-level (e.g. laws, infrastructure). 5.The developed framework adds a geographical dimension to barriers: different regions might present additional capabilities, infrastructure, and resources related to DTs. In this case, the government should balance the distribution of resources throughout the country’s territory. 6. The findings provide an initial link between corruption and the adoption of an SCE. DTs might increase the transparency and visibility of actors and flows. Previous work highlights the importance of disclosing environmental information to increase transparency, an activity that can definitely be supported by DTs. 12 IV Implications and Suggestions Practical implications: 12 IV Implications and Suggestions 12 IV Implications and Suggestions 12 V Conclusion, Recommendations & Limitation How does this paper differ from existing literature? Relied on SLR and case studies Give a holistic framework - classified barriers - 45 barriers in 8 dimensions Coupled theoretical and empirical investigations revealed unnoticed barriers in past literatures Captures multi-level nature of barriers & breaks down the idea that only companies overcome barriers Identifies barriers within Brazilian context that might be relevant to other developing economies 12 V Conclusion, Recommendations & Limitation Recommendations At micro level, Companies seek develop Circular product Encourage educational product Provide training to reduce organizational inertia. At meso level, Actors must foster collaboration with heterogeneous players Focus to enhance circularity of resources At macro level, Policies to be formulated to economically encourage SCE Focus to mitigate barriers; Eg: DT in sustainable initiatives. 12 V Conclusion, Recommendations & Limitation Limitations & Future work Despite Saturated Data Analysis, larger sample of actors would improve the findings Investigation in different industries and companies' sizes Focus on barriers that arise from crises and abrupt events Eg: impact of Covid 19 on the emergence and prevalence of barrier Refined nature of each barrier Tools and models to minimize the occurrence of each barrier. Root cause of the barriers, one another related A causal map to prioritize causes with the most significant consequences. 12 Group 9 Business Research Methodology Thank You
